Rail strike averted, concern lingers

The threat of a labor strike on US railroads was seemingly resolved last week after Congress approved and President Biden signed a bill prohibiting rail workers from commencing a nationwide work stoppage after a “cooling-off period” expires Dec. 9. But commodity trade analysts and industry leaders were still concerned about economic impactsfrom diminished rail performance while some believed a strike was still possible despite legal ramifications. 

For two years, railroad companies and rail union leaders representing more than 115,000 rail employees have been embroiled in varying degrees of labor disputes as the two entities negotiated rail workers’ five-year labor contracts. Two key contingencies fueling the dispute were workers’ schedules and paid sick leave benefits. Rail workers argued they had little to no control over their work schedules and had insufficient allowances for doctors’ visits. Read more